Live news: BlackBerry planning IPO for Internet of Things business

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, wrapping up a strategic review of its options, plans to hold an initial public offering for the company’s Internet of Things division, separating the business from its main cybersecurity operations.

Investors applauded the move, sending the shares up more than five per cent in late trading on Wednesday. The entire company currently has a market valuation of about US$2.5 billion. Veritas Capital has been seen as a possible suitor for BlackBerry. Bloomberg reported in August that the private equity firm was contemplating making a bid for the whole company.

Investor sentiment remains fragile after wild moves across markets this week driven by U.S. bond yields, the reference rate for the global cost of capital, soaring to multi-year highs. Weekly U.S. jobless claims data is due later today, and the monthly payrolls report will be released on Friday, which could cement bets on a November interest rate hike. Currently, swaps price a one-in-four chance of a United States Federal Reserve move next month.

“There is no magic level of yields that, when reached, will automatically draw in enough buyers to spark a sustained bond rally,” analysts led by Ajay Rajadhyaksha said. “In the short term, we can think of one scenario where bonds rally materially. If risk assets fall sharply in the coming weeks.”

 

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